New Build Values Outperform Existing Homes
Research from StripeHomes looked at price premiums, affordability, and house price growth for new build properties compared to existing homes.
For those looking to invest then sell the property on, the research looks at the appreciation in property values. In the last year, the average UK new-build property has increased by 7.3%, compared to just 1.5% for existing homes.
According to the report, new-build house price growth increased by 6-8% in every UK region over the last 12 months. Meanwhile, the market for existing property has only shown 3% growth over the last year in the top performing areas.
There are many benefits of a newly built home – not only is it a chain-free, simple purchasing process but you can move in as soon as the financials are in place. There are also incentives available for first time buyers and the Help to Buy scheme. Newly built homes are often better quality, more energy efficient and require very little maintenance for many years.
The real benefit of a new home is the appreciation of its value. Despite tough market conditions since Brexit and now the pandemic, new-build values have continued to go from strength to strength, far outperforming growth seen in the existing sector.
Glasgow has the UK’s strongest rental yield
For new-build investors looking to let their property in the near future, a recent study by Sourced Capital has shown that Glasgow currently has the highest rental yield in the UK.
Although buy-to-let rental yields on average have remained largely flat, up just 0.1% year on year, this masks some very significant regional variations. Although Glasgow has had a very marginal decline on an annual basis, the current average rental yield of 7.87% remains the strongest in the UK buy-to-let sector.